Reviewing Harmonic (NASDAQ:HLIT) and Actelis Networks (NASDAQ:ASNS)

Harmonic (NASDAQ:HLIT) and Actelis Networks (NASDAQ:ASNS) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Harmonic and Actelis Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmonic	9.96%	17.83%	10.23%
Actelis Networks	-115.31%	-264.19%	-80.77%

Analyst Ratings

This is a breakdown of current recommendations for Harmonic and Actelis Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmonic	1	3	4	0	2.38
Actelis Networks	1	0	1	0	2.00

Harmonic currently has a consensus target price of $12.17, indicating a potential upside of 13.81%. Actelis Networks has a consensus target price of $5.00, indicating a potential upside of 700.38%. Given Actelis Networks’ higher probable upside, analysts clearly believe Actelis Networks is more favorable than Harmonic.

Insider and Institutional Ownership

99.4% of Harmonic shares are owned by institutional investors. Comparatively, 12.4% of Actelis Networks shares are owned by institutional investors. 1.2% of Harmonic shares are owned by insiders. Comparatively, 1.7% of Actelis Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Harmonic has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Actelis Networks has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.

Valuation and Earnings

This table compares Harmonic and Actelis Networks”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmonic	$689.08 million	1.76	$39.22 million	$0.59	18.12
Actelis Networks	$7.76 million	1.01	-$4.37 million	($0.78)	-0.80

Harmonic has higher revenue and earnings than Actelis Networks. Actelis Networks is trading at a lower price-to-earnings ratio than Harmonic, indicating that it is currently the more affordable of the two stocks.

Summary

Harmonic beats Actelis Networks on 11 of the 14 factors compared between the two stocks.

About Harmonic

Harmonic Inc., together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers. The Video segment sells video processing, production, and playout solutions and services to cable operators, and satellite and telco Pay-TV service providers, as well as to broadcast and media, including streaming media companies. Its video processing appliance solutions include network management and application software, and hardware products, such as encoders, video servers, high-density stream processing systems, and edge processors. This segment also provides VOS360 SaaS platform that provides both streaming and channel origination and distribution services; and software-as-a-service (SaaS) solutions, which enables the packaging and delivery of streaming services, including live streaming, VOD, catch-up TV, start-over TV, network-DVR and cloud-DVR services through HTTP streaming to various device along with dynamic and personal ad insertion. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, integration services, program management, technical design and planning, building and site preparation, integration and equipment installation, end-to-end system testing, and training, as well as SaaS-related support and deployment. It sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was incorporated in 1988 and is headquartered in San Jose, California.

About Actelis Networks

Actelis Networks, Inc. engages in the design, development, manufacture, and marketing of cyber hardened, hybrid fiber, networking solutions for Internet of Things and telecommunication companies in North America, Europe, the Middle East, Israel, and the Asia Pacific. It provides rapid-deployment networking solutions for wide-area IoT applications, including federal, state, and local governments; intelligent traffic systems; and military, utility, rail, telecom, and campus applications. The company’s products include ethernet access devices; network aggregator switches; and Advanced MetaLIGHT/ Gigaline element management systems software, which enables remote management, monitoring, maintenance, and configuration of the installed equipment in the network. It also offers dynamic spectral software; and access broadband equipment. It serves offers its products through system integrators, distributors, contractors, resellers, and consultants. The company was incorporated in 1998 and is headquartered in Fremont, California.